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CU-Boulder GEOG 1982 - Lecture 4

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Russian Federation: Market Liberalization, Authoritarianism, and OilThe formation of the USSROil and the Command EconomyMap of the Current FederationThe Privatization of RussiaThe birth of the OligarchNeoLiberalism in Russia: Shock TherapyNeoliberalism and the Rise of a New Russian AuthoritarianismContinued…GazpromVideosConclusionRussian Federation: Market Russian Federation: Market Liberalization, Liberalization, Authoritarianism, and OilAuthoritarianism, and OilThe formation of the USSRThe formation of the USSRFormed in 1917: Bolsheviks against Czar Formed in 1917: Bolsheviks against Czar Nicholas II.Nicholas II.Lenin and Marx: The communist party and capitalismLenin and Marx: The communist party and capitalismNew Economic Program: hybrid of capitalism and New Economic Program: hybrid of capitalism and socialism socialism The ideals of communism: Redistribution of The ideals of communism: Redistribution of power to the proletarian. power to the proletarian. Stalin and the birth of the command economy.Stalin and the birth of the command economy.Soviet Authoritarianism, 20 million deaths, the Soviet Authoritarianism, 20 million deaths, the repression of media and political dissent. repression of media and political dissent. Ethnicity in the USSR: the Russianization of the Ethnicity in the USSR: the Russianization of the region. region.Oil and the Command EconomyOil and the Command EconomyControl over resources and infrastructure: Control over resources and infrastructure: State run monopolies and the State run monopolies and the consolidation of power in Central Asia. consolidation of power in Central Asia.Map of the Current FederationMap of the Current FederationFormed after the fall of Formed after the fall of the USSR in 1991 the USSR in 1991 following a failed coup.following a failed coup.Causes of failure: Causes of failure: Misallocation of goods Misallocation of goods and services, an and services, an overemphasis on industry overemphasis on industry over agriculture, Cold War over agriculture, Cold War Military expenditure. Military expenditure. Is Central Asia a Is Central Asia a member of the member of the federation? federation?The Privatization of RussiaThe Privatization of RussiaFailure of Socialism required new Failure of Socialism required new economic model: Capitalism.economic model: Capitalism.Foreign Direct Investment and the Foreign Direct Investment and the Dismantling of the Command Economy. Dismantling of the Command Economy. Loss of State revenue and debt.Loss of State revenue and debt.By 1998 Russia’s debt was 90 percent of its By 1998 Russia’s debt was 90 percent of its GDP.GDP.The birth of the Oligarch The birth of the Oligarch Rise in cost of goods and loss of personal Rise in cost of goods and loss of personal savings: limiting the entrepreneur.savings: limiting the entrepreneur.Sale of state run industries: political Sale of state run industries: political power, corruption and bribes. power, corruption and bribes. Consolidation of wealth and power and the Consolidation of wealth and power and the effects on social services. effects on social services.NeoLiberalism in Russia: Shock NeoLiberalism in Russia: Shock TherapyTherapyDramatic rise in the costs Dramatic rise in the costs of goods.of goods.Life expectancy: Life expectancy: Male: 1990 63.9, 2003 59Male: 1990 63.9, 2003 59Female: 1990 74.4, 2003 Female: 1990 74.4, 2003 7272No other country in the No other country in the world has experienced this world has experienced this large of a difference during large of a difference during peacetime.peacetime.Causes: Job loss, stress Causes: Job loss, stress and alcoholism.and alcoholism.Neoliberalism and the Rise of a Neoliberalism and the Rise of a New Russian AuthoritarianismNew Russian AuthoritarianismAuthoritarianism: of or pertaining to a Authoritarianism: of or pertaining to a governmental or political system, principle, governmental or political system, principle, or practice in which individual freedom is or practice in which individual freedom is held as completely subordinate to the held as completely subordinate to the power or authority of the state, centered power or authority of the state, centered either in one person or a small group that either in one person or a small group that is not constitutionally accountable to the is not constitutionally accountable to the people. people.Continued…Continued…Privatization of Russian Oil empowers Privatization of Russian Oil empowers multinational oil companies and oligarchs.multinational oil companies and oligarchs.Russian state losses revenue to pay for Russian state losses revenue to pay for social services: social unrest. social services: social unrest. Multinational oil companies pushing Multinational oil companies pushing private oil companies to construct new private oil companies to construct new pipelines in Central Asia that by-pass pipelines in Central Asia that by-pass Russia. Russia. Weakens Russia’s regional powerWeakens Russia’s regional powerGazpromGazpromPrimarily State owned oil and gas Primarily State owned oil and gas monopoly: Vladimir Putin the next monopoly: Vladimir Putin the next president of Gazprom?president of Gazprom?The imprisonment of an Oligarch: Yukos The imprisonment of an Oligarch: Yukos and Mikhail Khodorkovsky. and Mikhail Khodorkovsky.VideosVideoshttp://http://www.pbs.org/newshour/bb/business/july-dwww.pbs.org/newshour/bb/business/july-dec04/yukos_12-23.html#ec04/yukos_12-23.html#ConclusionConclusionThe rapid privatization and The rapid privatization and neoliberalization of Russian industry in the neoliberalization of Russian industry in the 1990’s and early 2000’s were responsible 1990’s and early 2000’s were responsible for the return of authoritarianism in Russia.for the return of authoritarianism in Russia.People’s experience with privatization, People’s experience with privatization, their loss of well-being, has given political their loss of well-being, has given political support to Putin’s aggressive authoritarian support to Putin’s aggressive authoritarian tactics.


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CU-Boulder GEOG 1982 - Lecture 4

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